Austin Reed owner sells to Alteri Investors
Austin Reed, the UK-based tailoring company, has been sold to Alteri Investors, a hedge fund with the backing of Apollo Global Management, The Sunday Times reported. Darius Capital sold an unspecified controlling Austin Reed stake and loan notes worth GBP 12m (USD 17m) to Alteri at the end of last week for an undisclosed one-off amount, the report said.
Alteri lent Austin Reed GBP 6m in 2015, the report said, and according to a person with close links to the matter is “highly likely” to have to put in further cash to keep the clothing company running.
Darius Capital is controlled by the property magnate Guy Naggar, the report noted. Just over a year ago the fund injected GBP 3m into Austin Reed as part of a deal with its creditors which resulted in the closing of 31 shops, the report said. The chain currently operates more than 160 outlets and has close to 1,000 employees.
Sunday Times